Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2024. On that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. Information for 2024 and 2025 is as follows:

Required:
1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2024?
2. Calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO retail method.

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Date 12/31/2024 12/31/2025 Ending Inventory at Retail $25,000 28,600 Retail Price Index 1.25 1.30 Cost-to-Retail Percentage 82% 85